Advantages & Disadvantages of ERP System Assignment Help

As per  ERP assignment help experts, following are the advantages and disadvantages of ERP system Advantages of ERP System


Using an ERP system is effective for the organization, as it has following advantages:


Reduce Cost: ERP system reduces the cost of an organization by atomizing the processes and activities of the business.


Improve processing: Business processing is also improved by ERP system through the integration of core activities as well as functions. In other words, all business process can be effectively aligned by using an ERP system. ERP system enables firms to secure a link between customer relationship management, procurement, supply chain management and decision making. For example, e-business suite of Oracle integrates all major portals and applications for the company.


Support inter intra company businessand : ERP system use also supports inter and intra business of the company that is another advantage for the company.

Promote Common Data Sharing: ERP system also promotes common data sharing in the organization across the departments like HR, Accountant, Finance, Operations and Marketing.


Enhance decision making: ERP system enhances rapid decision making in the organization by providing real time data to the managers.


Provide organizational flexibility: ERP increases flexibility and agility of organizations by breaking down the departments and silos present in the organization. In this way, ERP system enables the firm to be more adaptive to the changing business context.


Offer value added services: ERP system use also offers value-added services to the organization, as it improves operational efficiency (Spathis & Ananiadis, 2005). With improved operational efficiency, firms produce quality product and services that are considered value added by the people.


Disadvantages of ERP System: As per Enterprise Resource Planning Assignment HelpERP system also has following disadvantages that should be considered before implementing this system into practice.


Expensive: ERP system is expensive to install or implement, as it needs capital to procure this software package into practice. In other words, installation of ERP also needs knowledge of employees about its uses and application. So, it also needs training for the employees, which is another cost to the organization.


Complex: ERP system is complex also by nature, as it is not easy to implement it and if it is executed, there is no surety about its success in future. Therefore, if the ERP system fails after implementation, all efforts and resources used by the organization are wasted. For example, companies like, Nike, Hershey Foods etc have lost their market share, revenues and profitability due to improper execution of ERP. So, it is a major disadvantage of using an ERP system for the business.


Time Consuming: Implementation of ERP system is time-consuming that is another drawback of this software package.


Difficult to measure: Results or outcomes of ERP system are difficult to measure. In other words, the firm can measure the tangible benefits like cost, time etc, but it is not easy to measure the intangible benefits.


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